[THE PRESIDENT (LORD JUSTICE LAWRENCE, Member for the United Kingdom of
Great Britain and Northern Ireland) continues]

[Page 11]

In October, 1933, Germany withdrew from the International
Disarmament Conference and the League of Nations. In 1935
the Nazi Government decided to take the first open steps to
free itself from its obligations under the Treaty of
Versailles. On 10th March, 1935 the Defendant Goering
announced that Germany was building a military air force.
Six days later, on 16th March, 1935, a law was passed
bearing the signatures, among others, of the Defendants
Goering, Hess, Frank, Frick, Schacht, and von Neurath,
instituting compulsory military service and fixing the
establishment of the German Army at a peace time strength of
500,000 men. In an endeavor to reassure public opinion in
other countries, the Government announced on 21st May, 1935
that Germany would, though renouncing the disarmament
clauses, still respect the territorial limitations of the
Versailles Treaty, and would comply with the Locarno Pacts.
Nevertheless, on the very day of this announcement, the
secret Reich Defense Law was passed and its publication
forbidden by Hitler. In this law, the powers and duties of
the Chancellor and other Ministers were defined, should
Germany become involved in war. It is clear from this law
that by May, 1935 Hitler and his Government had arrived at
the stage in the carrying out of their policies when it was
necessary for them to have in existence the requisite
machinery for the administration and government of Germany
in the event of their policy leading to war.

At the same time that this preparation of the German economy
for war was being carried out, the German armed forces
themselves were preparing for a rebuilding of Germany's
armed strength.

The German Navy was particularly active in this regard. The
official German Naval historians, Assmann and Gladisch,
admit that the Treaty of Versailles had only been in force
for a few months before it was violated, particularly in the
construction of a new submarine arm.

The publications of Captain Schuessler and Colonel Scherff,
both of which were sponsored by the Defendant Raeder, were
designed to show the German People the nature of the Navy's
effort to rearm in defiance of the Treaty of Versailles.

The full details of these publications have been given in
evidence.

On 12th May, 1934 the Defendant Raeder issued the Top Secret
armament plan for what was called the "Third Armament
Phase " This contained the sentence:

"All theoretical and practical A-preparations are to be
drawn up with a primary view to readiness for a war without
any alert period. "

[Page 12]

One month later, in June, 1934, the Defendant Raeder had a
conversation with Hitler in which Hitler instructed him to
keep secret the construction of U-boats and of warships over
the limit of 10,000 tons which was then being undertaken.

And on 2nd November, 1934, the Defendant Raeder had another
conversation with Hitler and the Defendant Goering, in which
Hitler said that he considered it vital that the German Navy
"should be increased as planned, as no war could be carried
on if the Navy was not able to safeguard the ore imports
from Scandinavia "

The large orders for building given in 1933 to 1934 are
sought to be excused by the Defendant Raeder on the ground
that negotiations were in progress for an agreement between
Germany and Great Britain permitting Germany to build ships
in excess of the provisions of the Treaty of Versailles.
This agreement [ "Treaty Series No. 22 (1935) " Cmd. 4953.],
which was signed in 1935, restricted the German Navy to a
tonnage equal to one-third of that of the British, except in
respect of U-boats where 45% was agreed, subject always to
the right to exceed this proportion after first informing
the British Government and giving them an opportunity of
discussion.

The Anglo-German Treaty followed in 1937 [ "Treaty Series No.
2 (1938) " Cmd. 5637.], under which both Powers bound
themselves to notify full details of their building program
at least four months before any action was taken.

It is admitted that these clauses were not adhered to by
Germany.

In capital vessels, for example, the displacement details
were falsified by 20%, whilst in the case of U-boats, the
German historians Assmann and Gladisch say:

"It is probably just in the sphere of submarine
construction that Germany adhered the least to the
restrictions of the German-British Treaty. "

The importance of these breaches of the Treaty is seen when
the motive for this rearmament is considered. In the year
1940 the Defendant Raeder himself wrote:

"The Fuehrer hoped until the last moment to be
able to put off the threatening conflict with
England until 1944-1945. At that time, the Navy
would have had available a fleet with a powerful U-
boat superiority, and a much more favorable ratio
as regards strength in all other types of ships,
particularly those designed for warfare on the
High Seas. "

The Nazi Government as already stated, announced on 21st
May, 1935 their intention to respect the territorial
limitations of the Treaty of Versailles. On 7th March, 1936,
in defiance of that Treaty, the demilitarized zone of the
Rhineland was entered by German troops. In announcing this
action to the German Reichstag, Hitler endeavored to justify
the re-entry by references to the recently concluded
alliances between France and the Soviet Union, and between
Czechoslovakia and the Soviet Union. He also tried to meet
the hostile reaction which he no doubt expected to follow
this violation of the Treaty by saying:

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